McDonald's raises HK prices as rising operating costs bite

HONG KONG Jan 4 (Reuters) - McDonald's Corp
has raised some menu prices in Hong Kong by an average of 2.3
percent to compensate for surging operating costs, but the
world's biggest hamburger chain will leave prices in China, one
of its fastest growing markets, unchanged.

A spokeswoman for McDonald's China told Reuters the comnpany
had no plans to raise prices on the mainland for now. She said
it last raised prices in China in July but did not elaborate.

High food prices have topped policy makers' agendas because
of worries over the impact on inflation and potential unrest.
Last year, Beijing slapped a fine on consumer products giant
Unilever after it warned it may have to raise prices.

McDonald's, which competes in China with Yum Brands Inc's
KFC, Taco Bell and Pizza Hut, has 200 outlets in Hong
Kong, according to its website. McDonald's China has said it
aims to double its number of restaurants to 2,000 by 2013.

Last month, McDonald's Corp reported a bigger-than-expected
rise in November sales at established restaurants across the
board, led by big gains in Japan, China and a strong showing in
its top revenue market of Europe. China and Japan were singled
out by the company as outstanding.